Georgia 529 College Savings Plan

Georgia Higher Education Savings Plan (529 Plan)

Georgia Path2College 529 Plan

Operated under the authority of the Georgia Office of Treasury and Fiscal Services (OTFS), the Path2College 529 Plan allows you to save for a child's college education and enjoy tax benefits as well. When withdrawn to be used for qualified higher education expenses, the contribution and earnings portion will be free from both Federal and Georgia state taxes.

Additionally, all Georgia taxpayers are allowed to contribute and deduct up to $2,000 each year on behalf of any beneficiary. There are no income limits on this deduction and you do not have to itemize deductions to claim it. Of course you should check with a tax professional before taking any deductions

Georgia Coverdell Education Savings Account (ESA)

The Coverdell ESA has a couple of important differences from the Path2College 529 Plan. First, contributions are not tax-deductible. Second, the maximum AGI requirements are $110,000 for single taxpayers and $220,000 for joint taxpayers. Earnings grow tax-free and as long as distibutions are used for qualified higher education expenses, they are tax-free.

You should also check with a financial advisor and tax advisor to see if a 529 investment is right for you.